Gold, silver gain on dollar weakness

Precious metals prices were higher Tuesday on a weaker US dollar that resulted from expectations that the recession will end soon and that the economy will improve.

Analysts expect that demand for precious metals, especially gold, will improve further as investors worry more about inflation.

June gold was up $10.40 to $923.90 per troy ounce in New York while July silver added 31 cents to $14.22 per troy ounce and July platinum gained $11.40 to $1,132.10.

Base metals prices were up in London while July copper traded about even in New York at $2.09 per pound during the day.

Three-month copper on the London Metal Exchange added around $35 to trade in a range between $4,595/$5,600 per tonne as LME inventories of the metal used in manufacturing and construction fell by 6,150 tonnes.

London prices had gone as high as $4,717 per tonne earlier, but were send back down by declines in US equities markets and concerns that China’s copper imports could decline.

Zinc added $3 to $1,545 per tonne while aluminium was up $8 to $1,547 per tonne, lead was $49 higher to $1,475 per tonne, nickel added $120 to $13,045 per tonne and tin gained $125 to $14,025 per tonne.